Labour contractors agreement and selection

Labour contractors agreement and selection

Labour contractors agreement & selection criteria

As previously in our blogs & videos we discussed all the necessary details about constructing a basement of the house, a detailed blog about all the necessary requirements, materials and the costs incurred in completing grey structure of the house and it’s finishing. It was further briefed that we will be discussing the labour contractor agreement along with its procedure. If you’re interested in building a house on a labour contract through a labour contractor in your own supervision then there are two major things you need to take special care of. One of these two things is that during the construction a detailed written contract or agreement should be made with all the working labour contractors on the site to avoid any and all kinds of disputes. Secondly while deciding what labour contractor to choose it is very important that the contractor is chosen on the basis of his expertise and his quality of work.

There are two major steps in constructing a house.

  1. Grey Structure
  2. Finishing

Grey Structure:

There are four main types of labour contractors in Grey structure

  • Labour contractor for civil works
  • Plumber
  • Electrician
  • Steel fixer


Finishing contractors include

  • Electrician
  • Plumber
  • False ceiling contractor
  • Wood work contractor
  • Painter
  • Polish contractor
  • Windows works contractor
  • Steel works contractor
  • Tile/Marble fixer

Labour contractor for civil works is the most important out of all the labour contractors mentioned above. The contract between the client and the contractor can be divided into four (4) main parts.

Part 1

Part one of the contract consists of the details of both the parties (Client or the owner of the house and the labour contractor). The details mentioned in this part are the names of both the parties along with their Identity card numbers and other required details if deemed necessary by the client or the contractor.

Part 2

Part two of the contract will consist of the details about the plot i.e. the location of the plot, plot number, the size of the plot along with the rate that has been finalised between the client and the contractor. The rates can be decided either as per sq.ft for covered area of the house, where a rate is decided and is multiplied with the covered area of all the floors of the house or a lump sum amount of the house can be decided and written down.

Part 3

To be safe form unscheduled and unorganised payments to the labour contractors in part 3 of the contract a detailed payment scheduled should be mentioned so that both of the concerning parties know when they have to give or receive their decided payment at a decided time. It is best to do it stage wise so the client knows that his work is getting done and has no problem with paying the contractor similarly on the other hand contractor would know that he will get paid at a certain stage so he can plan his work accordingly.

Part 4

4th and the last part of the contract will consist of the scope of contractor’s work, in which all the details of the work that the contractor has to do will be mentioned. Labour Contractors scope of work includes, marking of the plot, excavation, brick work, plasters of the walls and to take care and manage all the labours and related works. Furthermore all the machinery and other things required during the construction of the house such as shuttering, scaffolding, mixer, lift, vibrator, compactor etc are also provided on the construction site by the labour contractors. Apart from previously mentioned tasks , constructing the house according to architectural designs and drawings is also in labour contractor’s scope.

labour contractors agreement sample

Contract & Agreement with other contractors

A brief contract should also be made with other contractors such as plumber, electrician, steel fixer and all finishing works contractors that may include the rate of their work, payment schedule, scope of work along with starting date of work and tentative completion date.

labour contract agreement sample

Selection criteria for labour contractors

A few things should be taken care of while deciding the labour contractors such as, before hiring the contractors, client must thoroughly visit the ongoing projects. This will help the client to get familiar with the quality of the work of that contractor, his professionalism and his man power. In the end there is one more thing that a client needs to be aware of, is that in under no circumstances he should give multiple tasks to one contractor as he will hire other contractors on a low rate for his margins and ultimately risking the quality of work required to construct a house. Finally after comparing the different contractors and doing apple to apple comparison, deicide the contractor and avoid unnecessary bargaining as this may also lead to risking the promised quality.


Print Friendly, PDF & Email

About The Author

Zeeshan Ahmad
A Griffith graduate in Marketing and an enthusiastic. Love learning and growing. Have a vast experience in Dairy farming and counselling careers and students. Handling marketing for a construction company established in 2010 and now a well renowned company in the market.


  • Watania on January 25, 2021

    Watania Construction Company
    One of the best Construction Services Provider in Town.
    Watania Build Dreams
    Under Supervision of Qualified Engineers.

  • MUhammad Faraz Faheem on November 29, 2020

    Dear Team Overcs,

    Indeed your input and guidance is very valuable for people engaged in building their house. Can you please shed some more light on payment plan when one is constructing a basement house.



  • Zuhaib Ullah Shah on November 23, 2020


    I’m assistant manager sites at INTERWOOD and working since 2013 in the finishing works if you need any service related do let me know.

  • Waseem on October 24, 2020

    Can you please share soft file for some changes

  • Junaid on October 30, 2019

    have you any job for sub engineer in designing department

  • anjum shehzad on May 11, 2019

    could anyone among you send me complete house construction agreement with client, payment schedule in %age, which part has to be include in contract agreement and which part of building has to be deducted.. What rate should be given to that deducted area.

    i shall be gratefull, if anyone could help me.

    my email

    whatsapp: +923339713049

  • Maninder Singh on August 10, 2018

    Dear sir English language me agreement pdf file send kar do pls

    • Mohsin Munir on August 10, 2018

      Whatever we can share, is available on website.

  • Muhammad Siddique on June 5, 2018

    Mohsin Monir,
    you are doing a great job of delivering the information, keep it up. much appreciated.

    • Mohsin Munir on June 5, 2018

      Thanks for kind words of appreciation Siddique shb.

  • Khizar on May 2, 2018

    If want to construct a house can u people construct it for me just like your portfolio 3400 square feet house if yes kindly tell me the price

    • Mohsin Munir on May 2, 2018

      Dear Khizar

      You can get in touch at following number to discuss proposals:
      Mr Haroon 0092 300 8494158

  • Asad on April 5, 2018

    Good to see professional and useful videos coming from Pakistan

    • Mohsin Munir on April 6, 2018

      Thanks for appreciating Asad. Comments like these are really encouraging.

  • umer on March 21, 2018

    AOA. sir construction of boundary wall and kacha outside covered area is included in gray contract or it is measured separately.if measured separately than at what rate.thanks

    • Mohsin Munir on March 21, 2018

      Best method for both labor and turnkey contracts is to include all works outside the covered area in your rate and do not measure separately. However it all depends upon covered area. If you have standard covered area (e.g 3400 sqft for 10 marla and 5400 for 1 kanal), then the builder can afford to quote you lumpsum per square feet rate in which no extra calculations will be done for works outside covered area. But if your covered area is too much less than the standard covered areas, then your works outside the covered areas shall be measured separately.

      • zain ul abdien on March 21, 2018

        what is the minimum covered area requirement of 5 marla house for lump sump finishing work rate.

  • Rizwan Ahmed on March 19, 2018

    dear sir ye Contract & Agreement kis tarhan download karin gein please tell me thanks

    • Mohsin Munir on March 20, 2018

      You can save it easily if you have adobe PDF reader installed.

  • Qaisar Javed on March 17, 2018

    Dear ,
    Great work and lot of information for construction which is really highy appreciable.

  • Fahad Noor on March 17, 2018

    I am from Karachi, I am planning to contruct a house for myself and your blog helped me a lot. Thanks a lot

    Further do you know or refer someone realibale and cost effective for construction in Karachi DHA, 100 sy with basement

    • Mohsin Munir on March 18, 2018

      Glad to know that this blog has been helpful for you.

      I have never worked in Karachi however have been following Kamdar realtors and Rizwan Sadiq on Facebook and their work looks professional.

  • Kashif Abrar on February 24, 2018

    Dear Engr. Mohsin Munir,
    I really appriciate your works as blogger. You are doing a great job.
    As Electro-Mechanical Engineer and working in Saudi Arabia own company i can understand the Engineering works.
    Well Done.


    • Mohsin Munir on February 24, 2018

      Dear Kashif Abrar,
      Thanks a lot for kind words of appreciation, as I always say that the appreciations that too from engineers area always encouraging.

  • Ahmad on February 21, 2018

    Impressive work techniques.You people have provided best techniques for the beginners and old one.You people are doing great.Work harder.

    • Mohsin Munir on February 21, 2018

      Dear Ahmad,
      Thanks for kind words of appreciation

  • Aamir Malik on February 21, 2018

    Very professional concept of Marketing keep up good work 👍

    • Mohsin Munir on February 21, 2018

      Thanks Aamir Malik shb for appreciating.

      • Shaheryar on October 28, 2019

        Sir can tell me that is elevation design and finishing includes in coverd area or its counted separatly

        • Mohsin Munir on October 29, 2019

          Depends upon the terms and conditions that you have set during during finalising the contract. Normally in standard practice it is included in covered area rate.

        • Mohsin Munir on November 3, 2019

          Depends upon the terms and conditions decided during agreement. In standard practice elevation as per drawing is included in covered area(for grey works only)

Leave a Reply

%d bloggers like this: